Several of India's leading car manufacturers, including Tata Motors and Hyundai, are reportedly urging the government to eliminate a proposed weight-based emission concession for small cars within the new Corporate Average Fuel Efficiency (CAFE) norms. These automakers argue that the concession would disproportionately benefit one company, allegedly Maruti Suzuki, while potentially hindering the country's electric vehicle (EV) ambitions.
The proposed changes to India's CAFE norms aim to reduce the permissible average CO2 emissions for passenger vehicles. The new target is set at 91.7 grams/km, a significant tightening from the previous target of 113 grams/km. While stricter norms are intended to encourage the production and sale of EVs, the proposed weight-based concession has created a divide within the industry.
Specifically, the draft rules propose leniency for petrol cars weighing 909 kg or less, measuring under four meters in length, and having an engine capacity of 1200 cc or below, citing "limited potential for efficiency improvements" in these smaller vehicles.
In letters to the government, Tata, Mahindra & Mahindra, JSW MG Motor, and Hyundai expressed concerns that the weight-based relief could negatively impact India's EV goals while favoring a single player. While the letters did not explicitly name the beneficiary, industry data and insider sources suggest that Maruti Suzuki, a major seller of small cars in India, would gain the most from this concession. Around 16% of Maruti Suzuki's sales come from cars weighing under 909 kg.
Maruti Suzuki, however, defends the necessity of such provisions, stating that similar measures exist in other major global car markets, including Europe, the U.S., China, Korea, and Japan, to protect the "very small cars" segment.
The ongoing debate has reportedly caused delays in finalizing the new regulations, which are considered crucial for automakers' future product planning and investments in powertrain technology. The government is yet to respond to these concerns.
